The deadline to file your 2023 taxes is approaching.
Here are two changes you need to know and two ways to save money when you file. First, income tax brackets shifted, meaning more income falls into lower tax rates. Here’s what that means for your return.
“When your standard deduction increases, that means the amount that the government is essentially taking away from your taxable income is going to increase,” said Matt Hein, Program Manager for financial Stability with United Way of the Mid-South. “That might mean your return increases.”
Also, the standard deduction increased due to inflation, meaning taxable income for most taxpayers decreased. According to Hein, that could also affect your return.
“Since the tax income brackets are adjusted for inflation, depending on where you fall, that might decrease your return,” said Hein. “You have a little push and pull this year.”
Because of these changes, experts believe your return will likely be the same as last year.
Here are two ways to save some money when you file.
If you make less than $64,000 a year, you can file your taxes for free with United Way of the Mid-South. Their tax experts help nearly 9,000 taxpayers every year.
With 20 sites across the Mid-South, call 211 to find one near you. You don’t need an appointment.
Here’s what you need to bring when you file your taxes with a professional:
- ID
- Social Security documents
- Income statements, like W-2s and 1099s
- Dependent(s) information
- Types of deductions
If you live in Tennessee, the IRS launched a new pilot program this month called "Direct File." If you’re eligible, you can also file for free.
According to the IRS, Direct File is a mobile-friendly, interview-based service that will work as well on a cell phone as it does on a laptop, tablet or desktop computer.
People in 12 states, including Tennessee, are eligible to participate in the 2024 Direct File pilot. It is limited to taxpayers with certain types of income, credits and deductions — taxpayers with relatively simple returns.
Other things to keep in mind before you file:
Start early: Don’t wait until the last minute to gather your financial documents and prepare your tax return.
Stay organized: Keep all your tax-related documents, such as W-2s, 1099s, receipts and statements, in one place.
The deadline to file is April 15.